Summary and Final Tasks

Key Learning Points: Lesson 4

In this lesson, we addressed the physical cash marketplace that, for the most part, deals with the "here and now." Below are some key points you should have learned in this lesson.

1. Cash prices reflect physical commodity trading.
2. The relationship between futures and spot market prices.
3. The relationship between futures contracts expiring in different months.
4. Arbitrage and situation that arbitrage can be utilized.
5. “Posted” prices or “Indexes” represent the market price.
6. Publications poll market participants and calculate “weighted” average prices.
7. Indexes are posted daily, weekly, monthly.
8. Three main price publications exist for natural gas.
9. Two main price publications exists for crude oil & natural gas liquids.
10. Market price publications are subscription only.
11. The U.S. Energy Information Administration has extensive current and historical market pricing for natural gas, crude oil, and natural gas liquids.

Reminder - Complete all of the lesson tasks!

You have reached the end of this lesson. Double-check the list of requirements on the first page of this lesson to make sure you have completed all of the activities listed there before beginning the next lesson.

In the next lesson, we will delve into the financial "futures" markets, whereby commodity prices can be obtained for future months and years.